H-0410.2 _______________________________________________
HOUSE BILL 1066
_______________________________________________
State of Washington 55th Legislature 1997 Regular Session
By Representatives Pennington, Chopp, Mason, Costa, Skinner, Hankins, Ogden and L. Thomas
Read first time 01/13/97. Referred to Committee on Capital Budget.
AN ACT Relating to the maintenance of state facilities; amending RCW 43.82.150, 43.88.032, and 43.88.110; reenacting and amending RCW 43.88.030; adding a new section to chapter 43.82 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that the capital stock of facilities owned by state agencies represents a significant financial investment by the citizens of the state of Washington, and that providing agencies with the tools and incentives needed to adequately maintain state facilities is critically important to realizing the full value of this investment. The legislature also finds that ongoing reporting of facility inventory, condition, and maintenance information by agencies will improve accountability and assist in the evaluation of budget requests and facility management by the legislature and governor. The purpose of this act is to ensure that recent enhancements to facility and maintenance reporting systems implemented by the office of financial management, and a new program created by the department of general administration to provide maintenance information and technical assistance to state and local agencies, are sustained into the future.
Sec. 2. RCW 43.82.150 and 1993 c 325 s 1 are each amended to read as follows:
(1)
The office of financial management shall develop and maintain an inventory
system to account for all owned or leased facilities utilized by state
government. At a minimum, the inventory system must include the location,
type, condition, and size of each facility. In addition, for owned
facilities, the inventory system must include the date and cost of original
construction and the cost of any major remodelling or renovation. ((The
system must be developed by January 1, 1994, and the initial inventory must be
completed by June 30, 1994.)) The inventory must be updated by June 30 of
each ((subsequent)) year. The office of financial management shall
publish a report summarizing information contained in the inventory system for
each agency by October 1 of each year, beginning in 1997.
(2) All agencies, departments, boards, commissions, and institutions of the state of Washington shall provide to the office of financial management a complete inventory of owned and leased facilities by May 30, 1994. The inventory must be updated and submitted to the office of financial management by May 30 of each subsequent year. The inventories required under this subsection must be submitted in a standard format prescribed by the office of financial management.
(3) For the purposes of this section, "facilities" means buildings and other structures with walls and a roof. "Facilities" does not mean roads, bridges, parking areas, utility systems, and other similar improvements to real property.
NEW SECTION. Sec. 3. A new section is added to chapter 43.82 RCW to read as follows:
The department of general administration shall provide information, technical assistance, and consultation on physical plant operation and maintenance issues to state and local governments through the operation of a plant operation and support program. The program shall be funded by voluntary subscription charges and service fees.
Sec. 4. RCW 43.88.030 and 1994 c 247 s 7 and 1994 c 219 s 2 are each reenacted and amended to read as follows:
(1) The director of financial management shall provide all agencies with a complete set of instructions for submitting biennial budget requests to the director at least three months before agency budget documents are due into the office of financial management. The director shall provide agencies that are required under RCW 44.40.070 to develop comprehensive six-year program and financial plans with a complete set of instructions for submitting these program and financial plans at the same time that instructions for submitting other budget requests are provided. The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period, as well as an outline of the proposed six-year financial policies where applicable, and shall describe in connection therewith the important features of the budget. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues as approved by the economic and revenue forecast council or upon the estimated revenues of the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast, including those revenues anticipated to support the six-year programs and financial plans under RCW 44.40.070. In estimating revenues to support financial plans under RCW 44.40.070, the office of financial management shall rely on information and advice from the interagency revenue task force. Revenues shall be estimated for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document, including the supplemental budgets submitted in the even-numbered years of a biennium. However, the estimated revenues for use in the governor's budget document may be adjusted to reflect budgetary revenue transfers and revenue estimates dependent upon budgetary assumptions of enrollments, workloads, and caseloads. All adjustments to the approved estimated revenues must be set forth in the budget document. The governor may additionally submit, as an appendix to each supplemental, biennial, or six-year agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.
Supplemental and biennial documents shall reflect a six-year expenditure plan consistent with estimated revenues from existing sources and at existing rates for those agencies required to submit six-year program and financial plans under RCW 44.40.070. Any additional revenue resulting from proposed changes to existing statutes shall be separately identified within the document as well as related expenditures for the six-year period.
The budget document or documents shall also contain:
(a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, those anticipated for the ensuing biennium, and those anticipated for the ensuing six-year period to support the six-year programs and financial plans required under RCW 44.40.070;
(b) The undesignated fund balance or deficit, by fund;
(c) Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;
(d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;
(e) Tabulations showing expenditures classified by fund, function, activity and object;
(f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury;
(g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.70 RCW, shown by agency and in total; and
(h) Tabulations showing each postretirement adjustment by retirement system established after fiscal year 1991, to include, but not be limited to, estimated total payments made to the end of the previous biennial period, estimated payments for the present biennium, and estimated payments for the ensuing biennium.
(2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:
(a) Interest, amortization and redemption charges on the state debt;
(b) Payments of all reliefs, judgments and claims;
(c) Other statutory expenditures;
(d) Expenditures incident to the operation for each agency;
(e) Revenues derived from agency operations;
(f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium, as well as those required to support the six-year programs and financial plans required under RCW 44.40.070;
(g) A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;
(h) Common school expenditures on a fiscal-year basis;
(i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods; and
(j) A showing and explanation of anticipated amounts of general fund and other funds required to amortize the unfunded actuarial accrued liability of the retirement system specified under chapter 41.45 RCW, and the contributions to meet such amortization, stated in total dollars and as a level percentage of total compensation.
(3) A separate capital budget document or schedule shall be submitted that will contain the following:
(a) A statement setting forth a long-range facilities plan for the state that identifies and includes the highest priority needs within affordable spending levels;
(b) A capital program consisting of proposed capital projects for the next biennium and the two biennia succeeding the next biennium consistent with the long-range facilities plan. Insomuch as is practical, and recognizing emergent needs, the capital program shall reflect the priorities, projects, and spending levels proposed in previously submitted capital budget documents in order to provide a reliable long-range planning tool for the legislature and state agencies;
(c) A capital plan consisting of proposed capital spending for at least four biennia succeeding the next biennium;
(d) A strategic plan for reducing backlogs of maintenance and repair projects. The plan shall include a prioritized list of specific facility deficiencies and capital projects to address the deficiencies for each agency, cost estimates for each project, a schedule for completing projects over a reasonable period of time, and identification of normal maintenance activities to reduce future backlogs;
(e) A statement of the reason or purpose for a project;
(((e)))
(f) Verification that a project is consistent with the provisions set
forth in chapter 36.70A RCW;
(((f)))
(g) A statement about the proposed site, size, and estimated life of the
project, if applicable;
(((g)))
(h) Estimated total project cost;
(((h)))
(i) For major projects valued over five million dollars, estimated costs
for the following project components: Acquisition, consultant services,
construction, equipment, project management, and other costs included as part
of the project. Project component costs shall be displayed in a standard
format defined by the office of financial management to allow comparisons
between projects;
(((i)))
(j) Estimated total project cost for each phase of the project as
defined by the office of financial management;
(((j)))
(k) Estimated ensuing biennium costs;
(((k)))
(l) Estimated costs beyond the ensuing biennium;
(((l)))
(m) Estimated construction start and completion dates;
(((m)))
(n) Source and type of funds proposed;
(((n)))
(o) Estimated ongoing operating budget costs or savings resulting from
the project, including staffing and maintenance costs;
(((o)))
(p) For any capital appropriation requested for a state agency for the
acquisition of land or the capital improvement of land in which the primary
purpose of the acquisition or improvement is recreation or wildlife habitat
conservation, the capital budget document, or an omnibus list of recreation and
habitat acquisitions provided with the governor's budget document, shall identify
the projected costs of operation and maintenance for at least the two biennia
succeeding the next biennium. Omnibus lists of habitat and recreation land
acquisitions shall include individual project cost estimates for operation and
maintenance as well as a total for all state projects included in the list.
The document shall identify the source of funds from which the operation and
maintenance costs are proposed to be funded;
(((p)))
(q) Such other information bearing upon capital projects as the governor
deems to be useful;
(((q)))
(r) Standard terms, including a standard and uniform definition of normal
maintenance, for all capital projects;
(((r)))
(s) Such other information as the legislature may direct by law or
concurrent resolution.
For purposes of this subsection (3), the term "capital project" shall be defined subsequent to the analysis, findings, and recommendations of a joint committee comprised of representatives from the house capital appropriations committee, senate ways and means committee, legislative transportation committee, legislative evaluation and accountability program committee, and office of financial management.
(4) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative evaluation and accountability program committee if the legislature is not in session.
Sec. 5. RCW 43.88.032 and 1994 c 219 s 4 are each amended to read as follows:
(1)
((Annual ongoing or routine)) Normal maintenance costs shall be
programmed in the operating budget rather than in the capital budget.
(2) All debt-financed pass-through money to local governments shall be programmed and separately identified in the budget document.
Sec. 6. RCW 43.88.110 and 1994 c 219 s 5 are each amended to read as follows:
This section sets forth the expenditure programs and the allotment and reserve procedures to be followed by the executive branch for public funds.
(1) Allotments of an appropriation for any fiscal period shall conform to the terms, limits, or conditions of the appropriation.
(2) The director of financial management shall provide all agencies with a complete set of operating and capital instructions for preparing a statement of proposed expenditures at least thirty days before the beginning of a fiscal period. The set of instructions need not include specific appropriation amounts for the agency.
(3) Within forty-five days after the beginning of the fiscal period or within forty-five days after the governor signs the omnibus biennial appropriations act, whichever is later, all agencies shall submit to the governor a statement of proposed expenditures at such times and in such form as may be required by the governor.
(4) The office of financial management shall develop a method for monitoring capital appropriations and expenditures that will capture at least the following elements:
(a) Appropriations made for capital projects including transportation projects;
(b) Estimates of total project costs including past, current, ensuing, and future biennial costs;
(c) Comparisons of actual costs to estimated costs;
(d) Comparisons of estimated construction start and completion dates with actual dates;
(e) Documentation of fund shifts between projects.
This data may be incorporated into the existing accounting system or into a separate project management system, as deemed appropriate by the office of financial management.
(5) The office of financial management shall publish agency annual maintenance summary reports beginning in October 1997. State agencies shall submit a separate report for each major campus or site, as defined by the office of financial management. Reports shall be prepared in a format prescribed by the office of financial management and shall include, but not be limited to: Information describing the number, size, and condition of state-owned facilities; facility maintenance, repair, and operating expenses paid from the state operating and capital budgets, including maintenance staffing levels; the condition of major infrastructure systems; and maintenance management initiatives undertaken by the agency over the prior year. Agencies shall submit their annual maintenance summary reports to the office of financial management by September 1 each year.
(6) The office of financial management, prior to approving allotments for major capital construction projects valued over five million dollars, shall institute procedures for reviewing such projects at the predesign stage that will reduce long-term costs and increase facility efficiency. The procedures shall include, but not be limited to, the following elements:
(a) Evaluation of facility program requirements and consistency with long-range plans;
(b) Utilization of a system of cost, quality, and performance standards to compare major capital construction projects; and
(c) A requirement to incorporate value-engineering analysis and constructability review into the project schedule.
(((6)))
(7) No expenditure may be incurred or obligation entered into for such
major capital construction projects including, without exception, land
acquisition, site development, predesign, design, construction, and equipment
acquisition and installation, until the allotment of the funds to be expended
has been approved by the office of financial management. This limitation does
not prohibit the continuation of expenditures and obligations into the
succeeding biennium for projects for which allotments have been approved in the
immediate prior biennium.
(((7)))
(8) If at any time during the fiscal period the governor projects a cash
deficit in a particular fund or account as defined by RCW 43.88.050, the
governor shall make across-the-board reductions in allotments for that
particular fund or account so as to prevent a cash deficit, unless the
legislature has directed the liquidation of the cash deficit over one or more fiscal
periods. Except for the legislative and judicial branches and other agencies
headed by elective officials, the governor shall review the statement of
proposed operating expenditures for reasonableness and conformance with
legislative intent. Once the governor approves the statements of proposed
operating expenditures, further revisions shall be made only at the beginning
of the second fiscal year and must be initiated by the governor. However,
changes in appropriation level authorized by the legislature, changes required
by across-the-board reductions mandated by the governor, changes caused by
executive increases to spending authority, and changes caused by executive
decreases to spending authority for failure to comply with the provisions of chapter
36.70A RCW may require additional revisions. Revisions shall not be made
retroactively. Revisions caused by executive increases to spending authority
shall not be made after June 30, 1987. However, the governor may assign to a
reserve status any portion of an agency appropriation withheld as part of
across-the-board reductions made by the governor and any portion of an agency
appropriation conditioned on a contingent event by the appropriations act. The
governor may remove these amounts from reserve status if the across-the-board
reductions are subsequently modified or if the contingent event occurs. The
director of financial management shall enter approved statements of proposed
expenditures into the state budgeting, accounting, and reporting system within
forty-five days after receipt of the proposed statements from the agencies. If
an agency or the director of financial management is unable to meet these
requirements, the director of financial management shall provide a timely
explanation in writing to the legislative fiscal committees.
(((8)))
(9) It is expressly provided that all agencies shall be required to
maintain accounting records and to report thereon in the manner prescribed in
this chapter and under the regulations issued pursuant to this chapter. Within
ninety days of the end of the fiscal year, all agencies shall submit to the
director of financial management their final adjustments to close their books
for the fiscal year. Prior to submitting fiscal data, written or oral, to committees
of the legislature, it is the responsibility of the agency submitting the data
to reconcile it with the budget and accounting data reported by the agency to
the director of financial management.
(((9)))
(10) The director of financial management shall monitor agency operating
expenditures against the approved statement of proposed expenditures and shall
provide the legislature with quarterly explanations of major variances.
(((10))) (11) The director of financial management
may exempt certain public funds from the allotment controls established under
this chapter if it is not practical or necessary to allot the funds. Allotment
control exemptions expire at the end of the fiscal biennium for which they are
granted. The director of financial management shall report any exemptions
granted under this subsection to the legislative fiscal committees.
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